Westamerica Bancorporation Reports Q4 2024 Net Income of $31.7M

By Bobby Samwell • Friday, January 17 11:01 • Permanent Link

Westamerica Bancorporation (NASDAQ: WABC) has reported its fourth quarter 2024 financial results, revealing a net income of $31.7 million and diluted earnings per common share (EPS) of $1.19. This is a decrease from the third quarter 2024, where the net income was $35.1 million and EPS stood at $1.31. The fourth quarter 2024 results include an increase to the book tax provision, which reduced EPS by $0.01.

The company's valuable low-cost deposit base, with 47% represented by non-interest bearing checking accounts, contributed to the strong performance. Operating expenses remained well controlled at 37% of total revenues, and the company recognized no provision for credit losses. Nonperforming assets were stable at $0.7 million, and the allowance for credit losses was $14.8 million at the end of December 31, 2024.

Net interest income on a fully-taxable equivalent (FTE) basis was $59.2 million for the fourth quarter 2024, compared to $62.5 million for the third quarter 2024. The annualized yield earned on loans, bonds, and cash for the fourth quarter 2024 was 4.25%, a slight decrease from 4.45% in the third quarter 2024. The annualized cost of funding the loan and bond portfolios also decreased to 0.24% for the fourth quarter 2024, down from 0.37% in the third quarter 2024.

Noninterest income for the fourth quarter 2024 totaled $10.6 million, compared to $11.9 million for the third quarter 2024, which included gains from life insurance and sales of other assets equivalent to EPS of $0.04. Noninterest expenses for the fourth quarter 2024 were $25.9 million, slightly lower than the $26.3 million reported for the third quarter 2024.

Additionally, the income tax provision for the fourth quarter 2024 includes a $305 thousand increase to reconcile the 2023 income tax provision to the filed 2023 tax returns.

Westamerica Bancorporation’s wholly owned subsidiary, Westamerica Bank, operates commercial banking and trust offices throughout northern and central California.

Today the company's shares have moved 0.6% to a price of $51.65. Check out the company's full 8-K submission here.

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